Subject: File No. S7-12-11
From: William Montgomery

May 19, 2011

I’m writing because I don't want to see another economic collapse like the one of 2008.

Wall Street pay practices were a major cause of the collapse. In the past, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality. One way to modify incentives so they won’t encourage another collapse of our economy would be to delay bonuses for three, five, or more years. That way, it will be known if loans that were made in a given year one remain good.

Thank you for considering my comment,

William Montgomery